What happens if a judgment proof person hits me in a car accident?
What will happen if I am hit by a judgment proof person in a car accident?
Every accident has a unique set of circumstances and factors leading up to the crash, so this answer will vary from person to person, car to car, and street to street.
In general however, if you can verify that the person has no insurance or assets, then unfortunately your options for obtaining restitution will be very limited.
An easy way to determine if someone truly has no insurance and isn’t just lying to you is to remain at the car accident scene until a police officer arrives. A police officer can easily cross-reference what kind of insurance a vehicle is covered under, if any, as they are obtaining information from all involved drivers and witnesses, like license and vehicle registrations.
Still, it is rare that an individual is completely immune to court-ordered restitution of any kind, and would NOT be a valid defense in court, should they get sued.
You can still sue “judgment proof” people!
You can indeed sue a judgment proof person and obtain a judgment in a court of law. “Judgment proof” only means that you won’t be able to collect on whatever the court would normally award as damages. So they can still have a judgment against them on record, but you won’t collect much money.
The misunderstanding arises since most people won’t bother to sue if they’re made aware that the person is judgment proof. Usually in these cases, the plaintiff would sue a different defendant that has assets, income, or property which they can garnish, levy, or lien.
Should I still sue someone who is “judgment proof,” if they were at fault for my accident?
It depends.
Many states like California have laws that account for people who do not have enough money to pay the judgment right away. The supposedly “judgment proof” person may also be unfamiliar with what types of assets are exempt from seizure, or to what extent those assets are exempt.
In California, if someone loses a lawsuit and can’t pay what the court orders, or if they cannot pay all of it right away, then the money they owe can increase. The judgment will probably show up on a credit report, which can hurt if they want to buy something or rent a place to live.
As long as the money is unpaid, it gathers interest at 10% per year in most cases (5% for personal debt under $50,000 or medical expenses). The sooner it is paid, the less interest they’ll have to pay. Any costs that you incur while in the collections process can be added to how much they owe. Additionally, the judgment can be renewed.
While there are laws that limit what income or assets can be seized legally for payment of a judgment, an experienced attorney may be able to advise you of more options than you realize for obtaining a proper recovery from your accident.
How can I protect myself if I get into an accident with a judgment proof person?
There are some methods to help prevent you from incurring losses at the hand of a judgment proof person with “nothing to lose.”
In this case, the saying “An ounce of prevention is worth a pound of cure” applies best.
You may find it unwise to pursue a lawsuit or settlement from a judgment proof individual, given the limited potential compensation.
Your best protection in this case is to retain your own insurance for your property, such as car insurance with added comprehensive, collision, Med Pay, or Uninsured Motorist Bodily Injury coverage, so that your injuries and damages can be fully covered on your end without needing to worry about how the judgment proof individual at-fault can’t pay for their fair share.
If you’re considering a lawsuit and want to be sure of your options, do not wait to win! Contact Win Nguyen Law now for a free consultation from some of California’s most experienced legal teams!
